A token that owns a book of stock liquidity.
Summary
LoomDesk is three things on Robinhood Chain: a marketplace for tokenized stocks priced in USDG, a token called LOOM whose trading fee is turned into liquidity in those stock pools, and Earn, which opens the same kind of position for anyone, in their own wallet. Every trade of LOOM pays 4%. Of that, 3% becomes liquidity in tokenized stock pools that the protocol owns, and 0.7% pays for operations. Every day, 80% of what that liquidity earns is paid to LOOM holders in USDG. The other 20% is reinvested, so the book grows.
Nothing in this document is a promise of yield. The book earns what the pools earn, and the pools earn what people trade. What is fixed is where the money goes, and that is enforced by contracts, not by us.
Why this exists
Robinhood Chain has tokenized US stocks trading around the clock against USDG, in Uniswap pools. Those pools pay fees to whoever provides liquidity, and on the busy names those fees are large relative to the money in the pool, because the pools are still thin. Providing that liquidity well takes capital, measurement, and attention every day. Most holders of a token have none of the three.
LoomDesk pools the capital through the token's own trading fee, does the measurement with an automated desk, and pays the result out daily. The token is the way in, the book is the asset, and USDG is what comes back.
The three parts
The token, LOOM
A plain ERC-20 launched on Pons, paired with USDG, with a fixed supply of one billion. It has no mint function, no blacklist and no transfer tax of its own. The trading fee is charged by the venue it trades on, not by the token, so wallet-to-wallet transfers are free.
The liquidity desk
A contract that receives the fee income, buys the stock side, opens and maintains concentrated positions in stock/USDG pools, collects what they earn, and sends the holders' share to the payout contract. An automated keeper drives it, within limits the contract enforces.
The marketplace and Earn
The marketplace lets anyone trade any listed tokenized stock for USDG through our desk, with a flat 5% fee shown before signing. Earn lets a user pay USDG and own a concentrated position in a stock pool, minted straight to their wallet in the same transaction; the desk is a middleman that holds nothing.
The token and its fee
LOOM launches on Pons, Robinhood Chain's launch venue, on a bonding curve paired with USDG. Pons charges its own 1% on every trade, and the creator sets a tax on top; ours is 3%. Pons passes 0.70 points of its own fee back to the creator, so the desk receives 3.7% of every trade, before and after the token graduates from the curve to its Uniswap pool. These rates were measured on a copy of the live chain and again on the live chain itself before launch.
| Slice | Share |
|---|---|
| Paid by the trader | 4% |
| Kept by Pons | 0.3% |
| Received by the desk | 3.7% |
| Operations | 0.7% |
| Into the liquidity book | 3% |
The operations share pays the keeper's gas, the servers and the people. It is a fixed share of receipts written into the desk contract, and it can only be changed by the desk's owner, in public, up to a hard cap. The desk cannot spend the book on operations: the contract keeps principal and earnings in separate buckets, and operations are taken only from fee receipts as they arrive.
The liquidity book
What the desk holds
The book has two legs, one desk per Uniswap generation. Fees arrive at the v3 desk; it passes principal to the v4 desk when the measurements favour a v4 pool, and takes it back when they do not. Both desks earn for the same payout contract and both answer to the same owner. Every rule below holds on each of them.
Fee income arrives as USDG and is booked as principal. The keeper spends principal in exactly three ways: buying the stock side of a pool it is about to fund, minting or topping up a concentrated Uniswap v3 position in a pool the owner has allowed, and depositing into Native's liquidity pool for USDG. Everything else the desk ever holds, the pool fees it collects and any gain on the way out, is earnings. The keeper cannot spend earnings; only the daily distribution can move them, and it moves them toward holders.
Which pools
The owner allowlists pools: at launch every listed stock/USDG pool on Uniswap v3 and the unhooked, fixed-fee ones on v4, each checked on chain to be exactly that; afterwards the keeper watches both generations for new pools deep enough for the book and hands the owner the inputs to allow them, and only the owner can. Inside that list the keeper chooses on evidence. Each day it records every pool's fee counters and depth. Over a rolling week it computes what a dollar of in-range liquidity earned in each pool. In-range liquidity is what the site calls depth and shows as “depth to move 2%”: the USDG it takes to move that pool's price by two percent, which is the part of a pool that actually earns at today's price, and the one measure used everywhere here, for Uniswap v3 and v4 alike. The ranking drops pools too shallow for the desk to sit in without becoming the pool, keeps the top seven, and weights them by the square root of that yield so the best pools lead without everything landing in one. It reweights weekly, keeps a funded pool unless it falls clearly out of the set, and never lets its own position exceed 30% of a pool's in-range liquidity, the same measure the ranking uses: the USDG it takes to move the price 2%. In-range liquidity is a fraction of everything a pool holds, between about a quarter and a tenth of it in the pools we fund, so the cap works out at roughly 3% to 8% of a pool's total holdings. A pool that drops out is not unwound by the keeper; the owner is told and decides.
How a position is made
For each chosen pool the keeper takes its share of the day's deployable principal, buys the stock half at a price quoted on chain with a minimum the desk enforces, and mints a range around the current price. When the price leaves the range the position holds one side only and stops earning. The keeper may unwind exactly such a position, and only such a position, back into the desk's own principal (no swap, no price moved), sell whatever stock the new range does not need at a quoted minimum, and place the money again in whichever pool ranks best. A position that is still in range only the owner can unwind.
Accounting
Two numbers govern the desk: the USDG principal it has not yet placed, and the stock principal it holds for placement, per stock. Earnings are one thing only: the trading fees the pools pay to the desk's positions, collected on their own. When a position is unwound, for a re-range or an exit, everything that comes back, USDG and stock alike, is booked as principal in the same transaction, whether it is worth more or less than went in. A gain on the way out stays in the book; a loss is a loss of principal the book carries. So an unwind can never produce a payout, and no position is ever liquidated into the holders' pocket: the daily distribution pays only the USDG the desk holds above its principal, which is collected fees and nothing else. Native's pool is the one place with a basis: deposits carry one, and what returns is principal up to it and earnings above it. No number on the site marks positions to market against principal; the book value shown is positions at the current price plus idle principal, and it is labelled as such.
Why a token, and its limits
The fair objection to all of this is that a fund could run the same strategy without a token: take deposits, issue shares, pay out the fees. Earn is that version, and it needs no token at all. So the token has to earn its place, and here is the case, with what it cannot do said as plainly as what it can.
The capital is permanent, and raised without a raise. An open-ended fund's capital is redeemable: depositors have to be persuaded to arrive, and they leave in the first bad week, usually the week the book would most want to keep its positions. A closed-ended fund solves that too, by raising once and locking the capital in, so permanence is not unique to this design and it would be wrong to claim otherwise. What the fee adds is that there is no raise at all: no allocation, no cap table, no minimum round, no investors to select. Trading itself capitalises the book, and nothing can withdraw it, holders included. It only grows, or is placed in pools.
Who funds it and who owns it. Plainly: the book is funded by trading flow and owned by holders. Those are not always the same people. Someone who buys and sells within the week pays 4% into a book they stop earning from when they leave, while someone who buys once and keeps holding pays the same once and earns from it indefinitely. That transfer is the mechanism, not a side effect of it, and this is built for the second person. It is why holding costs nothing, why transfers between wallets are free, and why the payout is daily rather than something you have to be present to claim.
Earn is not the token's competitor. Earn asks you to bring capital, choose a pool, choose a range and re-range it when the price leaves. The token asks you to hold. Most people want the second, and the ones who want the first can do it here or on Uniswap directly, which is said elsewhere in this paper because it is true.
The limit. This strategy has a ceiling. Fees in a pool are shared by the liquidity in it, so the more of a pool the book owns, the less each dollar earns, and a book far larger than the pools it serves would earn very little. The ceiling is the depth of Robinhood Chain's stock pools, tens of millions of dollars today across the listed names, not a number the protocol can raise by wishing. The keeper's rules take that seriously: the book's position in any pool is capped at 30% of that pool's in-range liquidity, the set is reweighted weekly toward whatever is actually earning, and money moves between Uniswap v3 and v4 pools on measurement rather than habit. Being a third of a pool already costs yield, since fees are split with your own liquidity, which is why the cap exists at all. The supply of one billion LOOM says nothing about that ceiling; it is a denomination, not a capacity.
Daily payouts
Every day at 18:00 UTC the keeper collects the fees the positions earned, sells any stock-side fees for USDG, and calls the desk's distribute function. That function looks at the USDG the desk holds above its principal, sends 80% of it to the payout contract, and adds the remaining 20% to principal. Anyone may call distribute; it can only move earnings toward holders.
The keeper then takes a snapshot of every LOOM balance at one block, leaves out contracts (the curve, the pools, the desk itself, the payout contract) and balances below a dust floor, and computes each holder's pro-rata share of the day's pot. It publishes those amounts as a Merkle root on chain, together with a link to the full list, and records every row in its database so that anyone can recompute the root from the list and check it matches.
One hour after publishing, the keeper pays every holder directly: USDG arrives in each wallet with nothing to sign. The hour is a safety delay; if a snapshot is wrong the owner can cancel that epoch before any money moves. Holders may also claim their own amount through the Rewards page at any time within thirty days. A holder that USDG refuses to pay (for example a frozen address) stays owed and is retried; amounts unclaimed after thirty days return to the pot for future payouts. Nothing can leave the payout contract except a claim against a published root.
The marketplace
Every listed tokenized stock on Robinhood Chain that has a USDG pool can be bought or sold on the site. Prices shown are the live pool mid price, read from the chain every few seconds. A quote comes from Uniswap's QuoterV2 on chain and includes the pool's own fee. Our desk charges a flat 5% on the USDG leg, shown as a separate line before you sign; it goes to the treasury. The trade settles through the MarketDesk contract in one transaction: it takes the USDG, swaps, and delivers the stock to your wallet, or the reverse. If the pool cannot meet your minimum the whole trade reverts and only gas is spent. Approvals are for the exact amount of one trade.
The site never routes through an aggregator and never holds your funds. The desk contract keeps nothing between trades; an unspent remainder is refunded with its share of the fee.
Earn
Earn is the platform's book offered to anyone, without pooling anyone's money. A user picks a pool and an amount. In one transaction the Earn desk takes its fee (1% of the USDG paid in, to the treasury), buys the stock half in the pool at a quoted minimum, mints a Uniswap v3 position in the user's chosen range with the user as its owner, and returns whatever the pool did not take. From then on the position is an NFT in the user's wallet. It earns the pool's trading fees while the price is inside its range and stops when the price leaves, until its owner re-ranges it, which is a close and a new open.
Closing works the other way, also in one call: the desk unwinds the position, sells the stock in the pool and delivers USDG, at a minimum the user sees before signing. Collecting takes the fees earned so far, as USDG or as the stock. Both need the same one-time allowance on the position manager that any position tool asks for, and both can equally be done on Uniswap directly. There is no queue, no reserve and no share price, because there is no pool of money: each position stands alone.
The desk holds no balance between calls and never owns a position. The owner can change the fee within a 5% cap, change the treasury, pause new positions and return tokens sent to the desk by mistake. It has no power over a position that exists. A user carries the stock's price: half of what they put in becomes the stock, and a position whose range the price has left holds one side only. The pools Earn offers are ranked by what a dollar of in-range liquidity actually earned over the last week, from the same daily measurements that steer the platform's own book.
Where trades settle
Tokenized stocks trade in Uniswap pools of two generations on Robinhood Chain, v3 and v4, and the book, the marketplace and Earn use both: for every stock the deepest pool right now is the one offered, and the book holds positions on both through two desks that pay the same holders. Native, a network of professional market makers that quote firm prices, is the other venue for v3 pools. Both the marketplace and the desk ask both for every trade and take whichever delivers more. A Native fill is executed with the calldata of a firm quote made out to our contract; the contract approves exactly the amount, calls only a router the owner has allowed, measures what really left and arrived, enforces the minimum, and refuses any fill more than a few percent under the pool's mid price. If Native cannot quote, the pool is used and nothing changes. The desk may also hold part of its principal in Native's USDG liquidity pool, a credit product with a daily rate set by Native and a queued withdrawal; that sleeve is capped and off by default.
Control and limits
The owner
The owner account controls the desk, the payout contract, the marketplace and Earn. It chooses the treasury, the keeper, the pools the desk may fund, the operations share (capped), the marketplace fee (capped), and the venues. It can unwind positions back into the desk, hand position NFTs to another address whole, and recover any token or ETH the desk holds, which together mean it can take the whole book. That power exists on purpose, for a migration or an emergency, and it means holders are trusting the owner with the book. Ownership can be transferred in two steps and can never be renounced. The disclosures page says the same in fewer words.
The keeper
The keeper is an automated process with its own hot key holding only gas. The contracts let it do exactly what the book needs and nothing else: claim fees, sell them for USDG, buy stock in allowed pools, open and add to positions bound to those pools, collect fees, distribute, publish and pay epochs. Every trade it makes needs a minimum the contract enforces, and a venue fill is checked against the pool price on chain. It can unwind a position only once the price has left its range, and what comes back stays in the desk as principal. It cannot spend earnings, cannot move principal out of the desk, cannot change any setting, and cannot pay anyone except through a published root. If it is compromised, the worst it can do is trade principal at a bad price within those bounds.
Pons
After the token graduates to its pool, the trading fee accrues in Pons' hook and only Pons' own operator moves it to where the desk can claim it. Pons' admin can also redirect a token's fee income to another address after a three-day notice that nobody else can cancel. The keeper watches both and raises an alert. This is a dependence we accept by launching on Pons, and it is disclosed.
How it was tested
The contracts, the keeper and the site were reviewed in six rounds, the last after the Uniswap v4 leg and Earn were added, and everything found was fixed and pinned by a test. Those reviews were internal: each round was done by a reviewer working without the previous round's notes, which catches more than one pass does, but none of them was an outside firm and none was paid to disagree. That last round added one guard worth naming: every trade the keeper makes in a pool must land within a few percent of the pool's own mid price, so even a stolen keeper key cannot give principal away through a bad minimum. At the time of writing the contracts carry 125 unit and invariant tests and 40 tests against a copy of the live chain, including the Uniswap v4 leg against the real SPY pool; the keeper 85 unit and 39 integration tests against a local chain and a real database; the site 30 end-to-end tests that drive every transaction flow in a browser with a scripted wallet and check the result on chain. The invariant tests fuzz the desk with every keeper, owner and market action mixed together and check that principal is always held, that only the daily distribution ever reduces holders' earnings, and that the operations cut is exactly its configured share.
Before launch the whole path was run twice on Robinhood Chain itself with real money and an unrelated wallet: a launch on Pons, buys on the curve, the fee claim, the stock purchase, a position, a deposit into Native's pool, the daily distribution, the snapshot, the published root and the payout to a holder's wallet, once paired with ETH and once with USDG, and an Earn position opened, collected and closed with real USDG. Two keeper bugs and one contract edge were found by those rehearsals and fixed. No outside firm has audited any of it.
Risks
Market. Tokenized stock prices move with their markets and can fall a long way. A position in a pool holds the stock, so a fall is a loss of principal, and it is not visible in the book until it is unwound. LOOM has no floor and can lose most or all of its value; USDG payouts do not protect against that.
Liquidity. Pools on Robinhood Chain can be thin. A large trade moves the price; a minimum not met reverts the trade. The yields that make a pool attractive fall as more liquidity arrives, ours included.
Counterparty. Tokenized stocks are separate tokens with their own issuers and terms, and an issuer can pause or freeze them. USDG can freeze addresses. Native's pool lends to market makers. Pons controls the fee rail after graduation.
Operational. The owner account controls everything. One keeper key runs the book. One server runs the site and the keeper. Each has been hardened, none is redundant.
Legal. The status of tokens that pay holders, and of tokenized stocks, is unsettled and differs by country. You are responsible for whether you may use this where you live. Nothing here is investment advice.
Glossary
Principal: money the desk may place into liquidity; fee receipts less operations, and what comes back from positions up to what went in. Earnings: everything the desk holds above principal; the source of payouts. Epoch: one day's published payout, a Merkle root on chain plus its list. Curve: the Pons bonding curve the token trades on before it graduates to a Uniswap pool. Graduation: the point at which Pons moves the token's liquidity from the curve into a pool. Range: the price band a concentrated position earns in. Basis: what a position or pool deposit is carried at.